With a quoted interest rate of $7\%$ and a $12\%$ compensating balance, what is the effective rate of interest $($use a $$250,000$ loan proceeds amount$)?$

$$With average accounts receivable of $$7\mathrm{.}5$ million and credit sales of $$30$ million, you factor receivables by discounting them $2\mathrm{.}5\%.$ What is the effective rate of interest?